UPDATE: Dell (DELL) PT Raised to $90 at Wells Fargo on PC Upside

February 26, 2021 5:55 AM EST
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Price: $93.34 -0.58%

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    17 Buy, 17 Hold, 0 Sell

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(Updated - February 26, 2021 7:13 AM EST)

Wells Fargo analyst Aaron Rakers raised the price target on Dell (NYSE: DELL) to $90.00 (from $80.00) while maintaining a Overweight rating after the company delivered F4Q21 results due to solid PC upside (commercial +16% y/y) and better-than-expected ISG results (+9.5% q/q).

The analyst stated "We increase our forward estimates (see below) and move our PT to $90 from $80. Key components of our positive thesis on Dell have been: 1) the company's continued execution on de-leveraging the balance sheet (now $29.2B core debt or ~2.5xdebt / adj. EBITDA); path to IG rating; de-leverage and IG rating will eventually shift capital return toward equity shareholders, and 2) VMware spin-o unlock (pointing to positive progress on discussions); ~$50/sh. intrinsic value per Dell share (w/ 20% discount). With the below noted guide, we're increasing our calendar 2021 and 2022 from $94.4B / $7.69and $97.0B / $8.11 to $97.4B / $7.94 and $101.4B / $8.18, respectively."


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